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The short answer
If you are an employee with at least two years' continuous service, you are entitled to statutory redundancy pay whatever your visa. GOV.UK sets it at half a week's pay for each full year under age 22, one week's pay for each year aged 22 to 40, and one and a half weeks' pay for each year aged 41 and over, up to 20 years. From 6 April 2026 weekly pay is capped at £751, so the maximum is £22,530.
Redundancy is hard on anyone, and on a sponsored visa it brings extra pressure. But the money you are owed under UK employment law does not depend on your immigration status. The tests are whether you are an employee, how long you have worked for the employer, your age, and your weekly pay.
Who qualifies
GOV.UK says you are normally entitled to statutory redundancy pay if you are an employee and have worked for your current employer for two years or more. Your contract may offer more than the statutory amount; it cannot offer less. Workers who are not employees, for example some agency or casual arrangements, may not qualify, so check what your contract calls you.
The formula
| Age during each full year of service | Weeks' pay per year |
|---|---|
| Under 22 | Half a week |
| 22 to 40 | One week |
| 41 and over | One and a half weeks |
- Service counted
- Up to 20 full years
- Weekly pay
- Average of the 12 weeks before notice is given, if pay varies
- Weekly pay cap
- £751 from 6 April 2026
- Maximum statutory payment
- £22,530
- Time limit
- Claim within 6 months if your employer does not pay
Only full years count, so 3 years and 11 months is three years. The cap means anyone earning more than £751 a week gross is paid as if they earned £751.
Worked examples (illustrative)
Example 1: a 35-year-old with four years' service
Gross weekly pay £650 (under the cap). All four years fall in the 22 to 40 band, so 4 × 1 week × £650 = £2,600.
Example 2: a 45-year-old with six years' service on a high salary
Gross weekly pay £1,000, capped at £751. Assume all six years were worked at age 41 or older. That is 6 × 1.5 × £751 = £6,759.
Example 3: mixed ages
Count each full year by the age you were during it. A worker now 42 with five full years' service worked them at ages 37, 38, 39, 40 and 41. The first four give one week each (4 weeks) and the year at 41 gives one and a half weeks, so 5.5 weeks in total. At £600 a week, 5.5 × £600 = £3,300.
Tax, notice and what else is owed
GOV.UK says statutory redundancy pay under £30,000 is not taxable. A termination package can also include holiday pay, unpaid wages and bonuses, which are taxed as normal pay. On top of redundancy pay you are owed notice (or pay in lieu) and payment for untaken statutory holiday.
- Ask for a written breakdown of every amount in the final payment.
- Check which parts are redundancy pay and which are wages or holiday pay.
- Keep your P45; a new employer and HMRC will need it.
- If you are not paid, GOV.UK says you have six months to claim.
Questions to ask in the redundancy meeting
- What is my continuous service start date, as the employer records it?
- What weekly pay figure is being used, and does it include regular overtime?
- Is there an enhanced (contractual) redundancy scheme on top of the statutory amount?
- How much notice will I get, and will it be worked or paid in lieu?
- How many days of holiday will be paid out, and on which date will the final payment arrive?
Get the answers in writing. A mistake in the start date is the most common way a redundancy payment comes out short, because a single missed year changes the total.
The visa side
On a sponsored visa, redundancy usually ends sponsorship, and the Home Office may then shorten your permission. The money steps for that period are in losing your sponsored job: the first 60 days. Redundancy pay can be the cushion that lets you find a new sponsor without panic, so protect it rather than spending it on the first month's bills if you can.
Where Pryme fits
A lump sum is easier to keep when it sits apart from everyday spending. A Pryme Personal Account holds pounds and naira (multicurrency), and if you choose to move part of it home, Swap shows the rate and the fee before you approve. Outside Nigeria, Pryme's activities are carried out through regulated partners.
Questions people ask
Do visa holders get redundancy pay in the UK?
Yes, if they are employees with at least two years' continuous service. GOV.UK's rules do not depend on nationality or visa.
How is redundancy pay calculated?
Half a week's pay per full year under 22, one week per year from 22 to 40, and one and a half weeks per year from 41, up to 20 years, with weekly pay capped at £751 from 6 April 2026.
What is the maximum statutory redundancy pay in 2026?
£22,530, according to GOV.UK, for redundancies from 6 April 2026.
Is redundancy pay taxed?
GOV.UK says statutory redundancy pay under £30,000 is not taxable. Holiday pay and wages in the same payment are taxed as normal.
Sources
- GOV.UK: Redundancy pay (updated Oct 2026) · accessed Oct 2026
- GOV.UK: Redundancy, tax and National Insurance · accessed Oct 2026
- GOV.UK: Redundancy, notice periods · accessed Oct 2026
- GOV.UK: Holiday entitlement, taking holiday before leaving a job · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.